If investors want to own stocks leveraged to a recovery in new home construction in the U.S., it's hard to do better than Ply Gem (NYSE:PGEM) in terms of sheer end-market leverage. Distributor Builders First Source (NASDAQ:BLDR) has more overall leverage to new housing construction, but at nearly 50% of sales, Ply Gem is well ahead of companies like Masco (NYSE:MAS) and Fortune Brands (NYSE:FBHS), and is roughly on par with Louisiana-Pacific (NYSE:LPX).
It takes more than just good end-market exposure to be a long-term winner, though, and Ply Gem certainly has work to do in improving margins and cleaning up its balance sheet. Although I think management has a...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|